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We are an aggressive company looking forward to commence operations for Supply Chain & Logistics into the Food Business starting from the 2nd fortnight of September 2013. Would request anybody to please suggest or help us with the FORMAT for Franchise Agreement
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Dear Panikars,

I have fundamental difference of opinion with you. The world over franchise models have succeeded provided their systems and processes were very strong and improvised over a period of time.

Now in your case you will start operations in SCM and Logistics in the next month. Ideally you should go ahead with your operations, train your staffs on your systems and processes and understand intricacies and challenges of the business. In the course of your operations, your staffs will commit so many mistakes. This will be due to either improper process or inability to follow the process. You should make inventory of their errors and improvise your processes further.

Have you done measurement of your systems and processes? What efforts have you made to improve them?

When you go for franchise mode, you should have ready made kit on how your operations should be conducted. You should ensure that franchisee recruits and further trains staffs on your SOPs. There should not be any variation in operations of two or 10 or 100 franchisees. Uniformity in operations is the hallmark in the success of franchise model. McDonald is a classic model.

A one time sapling is tree of future. Nurture this sapling and allow it grow at its own pace. When it becomes tree, you will find branches to the tree. In your case, you want branches to your sapling right from day one. Hope the weight of the branches does not collapses the sampling itself!

My views are forthright since I conduct training on strategic planning, strategic leadership. I know at least one case similar to yours where the company had failed miserably when they went for franchise model right from day one. Hence the radical views.


Dinesh V Divekar

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